Investors are wary ahead of elections in Greece on June 17, which could determine the future of the debt-ridden country in the euro zone currency bloc.

Officials from G20 nations told Reuters on Thursday that central banks were ready to take steps to stabilise financial markets, if needed, by providing liquidity and preventing any credit squeeze after Sunday's election.

The signal that world authorities were ready to take steps to prevent any worsening of Europe's debt crisis supported European financial shares on Friday, which have fallen sharply in recent weeks due to their exposure to Greece.

The STOXX 600 European bank index rose 1.6 percent, while the European insurance index gained by 1.3 percent.

However, Securequity sales trader Jawaid Afsar said he would be tempted to sell off shares later on Friday, in order to minimise any hits to portfolios in case of any unforeseen outcomes from the Greek election.

"If you're already in the rally, you should use the rally to start closing out your positions to reduce the risk ahead of Sunday," he said.

JN Financial trader James Fogden also said the European equities market rally could peter out later in the day, with an expiry of options contracts due at 1000 GMT also likely to make the trading session a volatile one.

"We could see a bit of a pull-back later," he said.

The FTSEurofirst has been within a tight trading range between 970 and 990 points established in early May, and traders said it was likely to remain in that range while uncertainty over the euro zone debt crisis persisted. (Reporting by Sudip Kar-Gupta; Editing by Louise Ireland)

Shares of CapitaLand were up around 3 percent at S$2.71 and have gained about 22.6 percent so far this year, versus the Straits Times Index's 6 percent gain.

While first-time homes still make up the bulk of sales, upgrader demand has returned on the back of China's interest rate cuts, its first since the global financial crisis, ABN AMRO said.

China makes up around 30 to 40 percent of CapitaLand's revalued net asset valuation, it added.

Average selling prices for residential properties in Beijing and Hangzhou are down 25 and 37 percent respectively since 2011, but are falling at a slower pace helped by a recovery in sales volumes, ABN AMRO said, adding the company does not have significant unsold inventory.

However, CapitaLand management does not expect the housing market to ease significantly until mid-2013, when there is potentially more clarity on housing policies, ABN AMRO said.

"Management intends to focus on Beijing, Shanghai, Chengdu and Chongqing going forward, where it believes it has enough scale and product edge to differentiate itself from competition," it said.

1514 (0714 GMT)

(Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com)

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12:51 STOCKS NEWS SINGAPORE-Shares rise, led by CapitaLand

Singapore share were up by midday, reversing two straight days of losses as investors regained some confidence from plans by major central banks to limit potential fallout following this Sunday's Greek elections.

At 0426 GMT, the benchmark Straits Times Index was up around 0.5 percent at 2,787.79.

Officials from the G20 nations, whose leaders are meeting in Mexico next week, said that central banks were ready to take steps to stabilise financial markets - if needed - by providing liquidity and prevent any credit squeeze after Sunday's election.

Property developer CapitaLand Ltd and rigbuilder Sembcorp Marine were the biggest gainers on the index, rising about 2.7 percent and 2.3 percent respectively. Sembcorp was also the second most-traded stock by value.

1232 (0432 GMT) (Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com)

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11:20 STOCKS NEWS SINGAPORE-DBS says S'pore tourism sector healthy

Singapore's tourist arrivals in April rose 9 percent from a year ago, and could point to a record breaking performance for hoteliers in the second quarter, which will benefit the hospitality sector, said DBS Vickers.

The brokerage also said the Singapore Tourism Board's (STB) target of 13.5 million to 14.5 million visitor arrivals this year could be exceeded.

According to STB data, tourism arrivals for the month of April rose 9 percent to 1.2 million from a year earlier, raising year-to-date arrivals to 4.8 million.

Hotel occupancy rates for April were at 87 percent with revenue per available room around S$227 per night, a 12 percent year-on-year jump, STB said.

Its top picks for the hospitality sector are CDL Hospitality Trusts, with a buy rating and target price of S$2.06, and Genting Singapore. It has a buy rating and target price of S$2.05 on Genting stocks.

1033 (0233 GMT)

(Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com)

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09:57 STOCKS NEWS SINGAPORE-STX OSV rises after order win

Shares of STX OSV Holdings Ltd rose as much as 3.52 percent after the offshore vessel builder said it had won a $235 million contract, prompting analysts to raise their target prices for the stock.

By 0156 GMT, shares of STX OSV were up 3.2 percent at S$1.465, and have gained about 26 percent since the start of the year, compared with the FTSE ST Oil & Gas Index's 13 percent gain.

STX OSV said its won a contract worth 1.4 billion Norwegian crown ($235 million) to design and build an advanced offshore subsea construction vessel for Ocean Installer and Solstad Offshore.

CIMB Research said this was STX OSV's largest contract win since its listing in Singapore and its fifth subsea order so far this year.

CIMB raised its target price for STX OSV to S$2.09 from S$2.02 and kept its 'outperform' rating, as it bumps up its order target for the company to 10 billion Norwegian crowns, from 9 billion Norwegian crowns.

"Investment in drilling units in 2011 should pave the way for such vessels, which are needed for field development. We continue to see opportunities in the subsea segment," said CIMB.

Another brokerage DMG & Partners also lifted its earnings per share estimates for STX OSV in 2012-2013 by 4-6 percent, upgrading its target price to S$2.05 from S$2.00.

Asian shares edged up on Friday, and the euro held most of the previous session's gains, as nervous investors took comfort from plans for coordinated action by major central banks to stabilise markets if Sunday's election in Greece results in turmoil. (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

Shares in auto-parts maker Thai Rung Union Car Pcl rallied as much as 7.8 percent, reversing two sessions of losses, after the company unveiled an assembly contract with client Nissan which is expected to boost revenue this year.

Thai Rung shares were up 5.6 percent at 9.5 baht ($0.30) at the mid-session break, outperforming a 0.7 percent gain in the broader market.

The company's shares rose to 9.7 baht in early trade, the highest since June 1, after a combined fall of 1.1 percent in two earlier sessions.

The Post Today newspaper quoted the company's Managing Director, Sompong Phaoenchok, as saying it won a contract to build about 4,000 units of Nissan's Navara per month and aimed for a revenue growth of 35 percent this year.

Shares in developer Property Perfect Pcl PF.BK gained as much as 6.5 percent to their highest in more than two weeks, outperforming other property stocks, after it forecast strong full-year revenue boosted by housing and condominium sales.

At the midsession break of 0530 GMT, Property Perfect shares was up 4.6 percent at 1.13 baht, gaining 64 percent so far this year. The property subindex .SETPR edged down 0.04 percent, rising 18.6 percent so far this year.

Property Perfect shares rose to 1.15 baht at one point, the highest since May 30. About 156 million shares changed hands, 3.3 times the average daily volume over the past 30 days.

The company said in a statement it expected 2012 revenue to rise by half to 12 billion baht ($379.93 million). It also cited the benefits of its stock inclusion in large cap SET 100 index .SET100 starting from July.

U.S. stock-index futures rose, indicating the Standard & Poor’s 500 Index will gain for a second day, as a document showed that European Union leaders plan to link budget and banking policies for the 17 countries using the euro.

Microsoft Inc. (MSFT) gained after a report said Yammer Inc. agreed to sell itself to the software company for $1.2 billion. SAIC Inc. may rise after JPMorgan Chase & Co. raised its recommendation on the stock.

EU leaders will push for new initiatives to help the 27 nation bloc’s economy and to improve lending conditions, according to a draft document prepared for a June 28-29 summit in Brussels.

Leaders also will call for “more specific building blocks” to link budget and banking policies among the 17 nations that use the euro, along with stronger governance of the shared currency. Euro-area nations will meet after the full EU meetings, according to the document, which was obtained by Bloomberg News.

Greek Election

On June 17, almost 10 million Greeks will vote for the second time in six weeks after a May 6 ballot failed to result in a government. The constitution permits a third election too. Exit polls will be released when voting ends at 7 p.m. in Athens, with a first official result estimate due around 9:30 p.m.

In the U.S., a report at 9:15 a.m. in Washington may show that industrial production in the world’s largest economy expanded at a slower pace in May. Output at factories, mines and utilities increased 0.1 percent after a 1.1 percent climb in April that was the biggest since December 2010, according to the median forecast of 79 economists surveyed by Bloomberg.

A separate report may show the Thomson Reuters/University of Michigan preliminary index of sentiment fell this month from the highest level since October 2007, economists said.

Microsoft rose 0.3 percent in German trading to $29.44. Yammer, a business software company, agreed to sell itself to Microsoft for $1.2 billion, the Wall Street Journal reported, citing a person familiar with the matter.

SAIC (SAI), the defense contractor specializing in computer services, may advance after JPMorgan equity analyst Joseph Nadol raised his recommendation on the stock to overweight, the equivalent of buy, from neutral. The six-month price target is $13 per share.

The Dalai Lama, Tibet's spiritual leader, is due to deliver a speech to business leaders in West Yorkshire as he begins a tour of the UK.

He is expected to discuss business ethics at the Yorkshire International Business Convention in Leeds.

China had earlier threatened to pull its athletes out of their Leeds Olympic training camp because of the visit.

The speech is expected to go ahead but Leeds City Council has removed any association with the convention.

Tibet is governed as an autonomous region of China and Beijing claims a centuries-old sovereignty over the Himalayan region.

But the allegiances of many Tibetans lie with the Dalai Lama, seen by his followers as a living god, but by China as a separatist threat.

'Frozen' diplomacy

The BBC's China Correspondent Damian Grammaticas said: "This eight-day visit to the UK could put Britain's ties with China under new strain.

"Since the Prime Minister David Cameron met the Dalai Lama in London last month Beijing has frozen diplomatic exchanges with British ministers.

"China's Communist rulers insist Tibet's exiled spiritual leader, a former winner of the Nobel Peace Prize, is an enemy of the Chinese state.

"He says he only wants to end oppression of Tibetans and win autonomy for his people."

Leeds is due to host China's pre-Olympic Games training centre, with about 220 athletes, coaches and support staff based in the city from early July.

Leeds City Council said the hosting deal was worth £250,000.

The Dalai Lama is the latest high-profile guest at the Yorkshire International Business Convention.

'Wonderful opportunity'

Previous speakers have included astronaut Neil Armstrong, former Soviet President Mikhail Gorbachev, Archbishop Desmond Tutu and former US President Bill Clinton.

Mike Firth, convention founder, said: "He is one of the most travelled men in the world, he has spoken with the most prominent of world leaders, and is one of the most high-profile guests we have ever had."

Mr Thubten Samdup, representative of the Dalai Lama, said the speech was "a wonderful opportunity for Yorkshire's business leaders to hear a distinctive message of ethics and morality from one of the world's most revered spiritual leaders".

The 76-year-old Dalai Lama will appear with actor and comedian Russell Brand at a youth event at the MEN Arena in Manchester on Saturday.

You may not be massively familiar with Yammer, a business social network, but Microsoft apparently thinks so much of the site it has agreed to pay $1.2billion for the site.

The Wall Street Journal reported the acquisition - worth about 772million - this morning, although so far neither partner has confirmed the deal.

Yammer, founded in 2008, is strictly for business social networking - and you can only join the site if you have the right 'email' address.

For instance, a Microsoft employee could join the network if they sign up with a '@microsoft.com', which gives a level of validation to members

The site has been nominated for many awards in the past, such as TechCrunch's Best Enterprise Startup and Best New Startup, and it has previously received more than $140million in investment funding.

Microsoft has been very closely embedded with Facebook so far, with the site's search engine Bing integrated in Facebook. However this might be Microsoft's way of embedding itself with the enterprise side of social networking.

Some tech commentators suggest we may end up seeing Yammer integrated into popular Microsoft applications like the Office suite.

According to KnowYourMobile, Yammer - which is free for members unless they wish to upgrade to premium for $5 a month, is used by 200,000 companies including Ford and eBay.